Question 17\

4.5pts

\ Zimmer Inc. typically receives 850 checks everyday and the average size of check is

$700

. The company is now considering using a lockbox system. The lockbox system costs with

$0.20

per check. It can reduce the collection time by three (3) days. What is the NPV of the new lockbox system? Assuming the daily interest rate is

0.035%

.\

$109,286

\

$1,784,830

\

$1,299,286

Zimmer Inc. typically receives 850 checks everyday and the average size of check is $700. The company is now considering using a lockbox system. The lockbox system costs with $0.20 per check. It can reduce the collection time by three (3) days. What is the NPV of the new lockbox system? Assuming the daily interest rate is 0.035%. $109,286 $1,784,830 $1,299,286